If a single-family owner-occupied property is worth $400,000 - I wouldn't invest more than $280,000 (70%) in a note secured by the property.ITV takes priority over desired yield - so even if the note discounts to $350,000 based on desired yield, the investor still won't go beyond their maximum ITV. 

If you are going to have this asset for a long time it'll be worth the peace of mind knowing its updated. 

I'd bet that this note is worth more to you than to most buyers until the note is much lower LTV, but I'm a novice in this space.

A HELOC or cash-out refinance is definitely worth exploring if you want to free up capital for more investments, but make sure it fits your goals and comfort level.

Quote from @Evan Polaski: @Jamie Parker, for what it is worth, I tend to agree that you can't take the 70% rule for much of anything.  

In Dallas-Fort Worth, for example, SafeCo recently began writing new policies again.

Not an easy thing, but saving 20% or more on the cost of a new home seems well worth the time and effort if you ask me.

Once it’s set up, though, payments tend to come like clockwork, which is one of the biggest perks.That said, it's important to remember that rent isn’t necessarily guaranteed forever like a lot of folks assume.

.: I haven't passed this past legal review so for what its worth: Part of my standard requirements for everyone include income is at least 3X rent, minimum credit score, say 640, Clean record and no evictions as well as deposit is paid in full at signing of lease and 1st month rent is paid in full prior to handing over the keys.

That risk, in retrospect, is not worth the potential return.